Last week, BitConnect turned out to be a major scam and shut down its exchange platform. However, this is not the end of BitConnect Coin (BCC). Later this year, with the launch of BitConnectX ICO, the BCC currency can be used to buy into this ICO. However, the reveal of BitConnect as a Ponzi scheme should make us wary of BitConnectX that it will end up in financial loss.
Another BitConnect Scam on the move in ICO form!
In late December 2016, BitConnect came into the picture with an Initial Coin Offering (ICO). The company swiftly gained a good position as one of the best-performing currencies of 2017 on CoinMarketCap. After all, during its peak time, BitConnect has a market cap of more than $2.6 billion. However, the suspicious business model of the investment platform made it capture the attention of naysayers labeling it nothing more than a Ponzi scheme.
In an ICO industry, surely not all of the projects succeed. Though many of the projects are surely legitimate, a lot of the ambitious plans won’t be able to turn into viable products too. Also, there will be some major scams.
One such upcoming ICO is BitConnectX that is connected to the BitConnect Ponzi scheme. After all, BCC is one of the cryptocurrencies that has to be used to contribute to this ICO that raises severe red flags.
Now, the company has signed a partnership with the Blockchain Expo. Apart from having their own stand in this Expo in California, BitConnect has also attended the ICO event conference as a sponsor in Amsterdam.
What is wrong with BitConnectX ICO?
The BitConnectX ICO also doesn’t look legitimate enough for multiple reasons. To start with, the BitConnect name is already a red flag. Moreover, this open source new cryptocurrency won’t be offering anything useful to the ecosystem. Though the holders of BCCX will earn interest by keeping the coins in their wallets, Proof-of-stake currencies are nothing new. Furthermore, it means, similar to how BitConnect was issued, there is no way to mine BCCX.
There are in total 49m coins, out of which only 14.7m have been issued first. This raises a lot of concerns, one being the unsold coins will go in the reserve fund. This means the coins can be dumped in the market any time by the project developers. Also, out of the available supply, about 11.76m tokens only will be old which is clearly disaster in the making. This gives a clear indication that anyone who will invest in this project is bound to lose his money, if not sooner than later.
Just like BitConnect that is now listed only on unreliable trading platforms, no exchanges will want to trade BCCX later in the future.
In our opinion, it is best to stay away from this ICO unless you are all prepared to lose your invested money.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.